The company has acquired three assets for $270.6m. Macquarie estimates the transaction is largely neutral to earnings in FY20 and, whilst a marginal positive, is insufficient to change its view on the stock.
The benefit will be in FY21 and the broker estimates the transaction is around 150 basis points accretive to earnings per share. Underperform retained. Target rises to $4.49 from $4.36.
Sector: Real Estate.
Target price is $4.49.Current Price is $5.67. Difference: ($1.18) – (brackets indicate current price is over target). If CLW meets the Macquarie target it will return approximately -26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
